The Return Perspective:

The return on investment using this strategy varies from deal to deal depending on their end costs. While finding the right stocks, the profits can be substantial.

The Advantages:

Once the council approves the application, the properties can be sold individually. With their own titles and an efficient cost structure, they could be worth more individually than they were under the same title.

The Potential Risks/Difficulties:

Once the titles are separated, the individual properties will have its own set of maintenance and electrical costs.

Often the council requires modifications to be carried out to the properties, as well as additional parking requirement and other restrictions as part of conditions of approval. Some of the properties simply can't or aren't capable to meet those extra requirements due the reasons beyond investors' control.

Not all strata titling will make good money. Costing out the project ahead of the purchase is essential for investors using this strategy.

Fire regulation is often the most difficult issue investors face. The walls separating the units need to meet certain standards of fire rating established by their local council. Sometimes this could be a very costing job for investors.

Finding the right stocks for strata titling in the major cities is very difficult due to the very high costs the council would charge for each unit or block titling.